User Account

All Pages

What would the market value of your bond be

Assignment Help Finance Basics
Reference no: EM132596353

There is an inverse relationship between bond prices and yields. This inverse relationship will be demonstrated by calculating bond prices to show that interest rates move inversely: if yields rise, then bond prices fall. Bonds will be sold either at a premium or a discount. With this in mind respond to the following question.

You currently own a 30 year Treasury Bond paying a 4% annual coupon rate. The market interest rates for like securities rose to 5%. Would your bond sell for a premium or a discount? Why?

What would the market value of your bond be? Prove your answer by showing your work, the appropriate factors, or the factors that would be used for the fx calculator.

Reference no: EM132596353

Questions Cloud

Explain a new technology that the business should deploy : Explain a new technology that the business should deploy. Be specific, don't only note the type of technology but the specific instance of technology.
Define the profitability ratio-liquidity ratio : Define the Profitability ratio, Liquidity ratio, Efficiency ratio, Investment ratio.No plag please.
Make a apportion the overhead costs to various department : Make a Apportion the overhead costs to the various departments on the most equitable basis.Maridadi Manufacturing Company has four departments
Contrast the internal levels of change and resistance : Compare and contrast the internal levels of change and resistance, and then conclude which level would be the most difficult to address.
What would the market value of your bond be : What would the market value of your bond be? Prove your answer by showing your work, the appropriate factors, or the factors that would be used
What performance measures would you recommend : Chapters 26 through 29 presented four mini-case studies on ERM and risk. Each one presented a slightly different risk scenario.
Describe the organizational politics or rational model : Pick one of the following terms for your research: authority, competition, confrontation, dependency, empowerment, intergroup conflict, negotiation.
Incremental free cash flows-montreal poutine company : Montreal Poutine Company (MPC) will release a new range of frozen poutine which contain flavoured cheese curds.
What is the maximum amount of student loan interest : In 2019, she paid interest on a qualified student loan. What is the maximum amount of student loan interest she could potentially deduct

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd